NewBase June 14 -2022 Energy News issue - 1522 by Khaled Al Awadi.pdf

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NewBase Energy News 14 June 2022 No. 1522 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE picks Siemens tech to power EV charging corridor
TradeArabia News Service
The UAE’s Ministry of Energy and Infrastructure has selected Siemens technology for a nationwide
network of ultra-fast electric vehicle (EV) chargers which will help reduce carbon emissions and
boost adoption of EVs by addressing range anxiety.
Ten Siemens Sicharge D 160 kW ultra-fast chargers will be installed on the highways in Ras Al
Khaimah, Ajman, Umm Al Quwain and Fujairah.
To meet the changing market demands, the chargers have a scalable power up to 300 kW and can
be expanded with additional external dispensers for up to two additional charging cables. All are
cloud-connected devices which allows operators to monitor and manage the chargers remotely.
“The UAE is committed and working with confidence to reduce the nationwide carbon footprint, by
working on the demand side, supply-side and working on our different energies and future
technologies to reduce our carbon footprint,” said Sharif Salim Al Olama, Under-Secretary of the
Ministry of Energy and Industry.

“Electric vehicles are integral to this effort, and providing this
fast, efficient and convenient EV corridor is a crucial step in
the energy transition.”
Siemens will provide the charging infrastructure equipment,
control and monitoring software, as well as training and
commissioning support for the new network. The command-
and-control system allows full monitoring and control of all
units and provides the foundation for the next phase of the
project, which is to build an app for drivers to access and
book chargers.
“We are proud to support the sustainability program in the
United Arab Emirates with our EV charging solution,” said
Birgit Dargel, Vice President Sales eMobility at Siemens
Smart Infrastructure.
“This project in the UAE continues the success story of our public fast charger Sicharge D. With a
peak efficiency of 96 percent, it is one of the most efficient high-power DC chargers currently
available. Its communication ability with the cloud provides operators with real-time information and
flexibility to manage their charging network. Its intuitive, height adjustable 24” touch screen display
as well as its elegant appearance guarantees a great user experience.”
The Ministry of Energy and Infrastructure and Siemens signed a memorandum of understanding in
October 2021 to establish a long-term partnership that will aid the ministry’s sustainability and
digitalization targets.
In addition to transportation, the discussions include smart building technologies, microgrid and
industrial energy management and intelligent substations on the grid edge. The national EV
Charging Corridor is the first project that will be delivered under the MOU framework.

U.A.E: Abengoa Start 200 MIGD Abu Dhabi Taweelah desal plant
Abengoa+ NewBase
Abengoa, a Spanish company specialising in green infrastructure, energy and water sectors, said
its consortium with top engineering and construction company SepcoIII has begun commercial
operation at the 909,000-cu-m/day ( 200 Million Gallon / Day) Taweelah desalination plant, loctaed
45 km north of Abu Dhabi.
The Taweelah desalination plant has passed the contractual tests for Acwa Power, the leading
company in the development, investment, ownership and operation of power generation and
desalinated water production plants.
With the completion of the first phase, the desalination plant, which is located within the Taweelah
power and water generation complex, is now producing 450,000 cu m/day of desalinated water.
Phase Two is currently at an advanced stage of construction and once ready it will desalinate a total
of 909,000 cu m/day (phase 1 + phase 2).
Abengoa said its scope of work in the Taweelah desalination plant project has been extensive,
including design, engineering, supply of the main equipment, supervision of assembly,
commissioning, start-up of the reverse osmosis and post-treatment systems and providing advice
on the pre-treatment processes carried out by third parties.
All in all, the Taweelah desalination plant meets each and every one of the drinking water
parameters required by Abu Dhabi, including hardness, alkalinity, LSI (Langelier Saturation Index),
SDI (Silt density Index), PH, and boron content.
This project, located on the coast of the Arabian Gulf, is part of the plan developed by the UAE
government to encourage private participation in the country's infrastructure development. The
desalination plant will have the capacity to supply approximately four and a half million people, it
added.

Thanks to this new milestone, Abengoa once again demonstrates its technical capacity, undertaking
highly complex works, as well as adapting to adverse working conditions, in very diverse countries.
It also consolidates its position as a leading company in the desalination sector worldwide, with an
installed capacity of three million m3/day, which will be increased to four million m3/day when the
portfolio under execution is also completed.
Abengoa is also strengthening its presence in the Middle East, where it is currently executing,
among others, the Jubail 3A (600,000 cu m/day) desalination plants in Saudi Arabia; and has
constructed the Shuaibah III (250,000 cu m/day) and Rabigh III (600,000 cu m/day) plants in Saudi
Arabia, and the Salalah (114,000 cu m/day) plant in Oman.

KSA: LONGi to supply Hi-MO5 PV panels for Rabigh PS 400MW
TradeArabia News Service
LONGi, a world-leading solar technology company, has been awarded a module supply contract for
the 400MW (DC) Rabigh Solar PV IPP (independent power project) project in the Kingdom of Saudi
Arabia (KSA).
The plant, expected to be commercially operational in July 2023, is located in Rabigh Industrial City,
in the kingdom's western Makkah Province, some 150 km from Jeddah, and will exclusively deploy
LONGi Hi-MO 5(72C) modules.
LONGi was awarded the deal via its EPC (engineering procurement construction) contractor, China
Energy Engineering Group, Guangdong Power Engineering Company (GPEC). The awarding
ceremony in Riyadh was attended by LONGi and its partner GTek Solar (Green Technology
Company).
PPA agreement
In 2021, Japan's Marubeni Corporation announced that it had signed a Power Purchase Agreement
(PPA) for the Rabigh project with the Saudi Power Procurement Company (SPPC), with the latter
committing to the purchase of power produced for a period of 25 years following the project's
Commercial Operation Date (COD).
The COD is forecast to take place in July 2023 and will be Marubeni's first large-scale solar project
in Saudi Arabia and its fourth in the Mena region. It was selected in 2020 by the Japanese Ministry
of the Environment for the Joint Crediting Mechanism (JCM) financing programme, a venture
resulting from cooperation between the Saudi and Japanese governments.
Guo Huojin, General Manager of GPEC, said at the ceremony: “Under Vision 2030, the Rabigh
project represents a new chapter for us in attracting projects in Saudi Arabia and it is important that
we now deliver a high-quality project to our client, in close collaboration with our partners LONGi
and GTek. We look forward to building a long-term strategic partnership between our three
companies.”
Sustainable future
Omar Alluhaydan, GTek Solar CEO, added: “Signing up for the Rabigh project is another step towards a
sustainable future with our partners, while helping achieve Vision 2030's objective of increasing the
contribution of renewable energy.”
Jia Chao, LONGi VP for MEA and CA, concluded: “Saudi Arabia is at the heart of the Arab and Islamic
worlds, leading investment capabilities and sustainable Vision 2030 ambitions. LONGi, GPEC and GTek will
work together to win and build more mega projects to drive the Saudi energy transformation, in order to
accomplish the kingdom's vision of renewables contributing up to 50% of the total energy mix by 2030.”

Egypt: SDX Energy completes drilling at MSD-24 well, West
Gharib Concession…. Source: SDX Energy
AIM-listed SDX Energy, the MENA-focused energy company, has announced the completion of
drilling at the MSD-24 infill development well on the Meseda field in its West Gharib
concession, Egypt (SDX WI: 50%). MSD-24 encountered the primary top Asl Formation reservoir
at 4,089ft MD (3,276ft TVDSS) and reached a TD of 4,625 feet MD on 5 June 2022. The well
encountered 86.5 feet of good-quality, net oil pay sandstone, with an average porosity of 19% in
the Asl Formation reservoir. MSD-24 will now be tied-in to the existing facilities and flow tested.
MSD-24 is the fourth well in a fully-funded, 13-well development campaign on the Meseda and
Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert. Operations at the third
well, MSD-20, are continuing. The development drilling campaign is aimed at growing production to
c.3,500 - 4,000 bbl/d by mid-2023.
The rig will now move to the next well in the campaign, MSD-27, which is expected to spud in July
2022.
Mark Reid, CEO of SDX, commented:
'The logs from MSD-24 are encouraging and the well will now be connected to our infrastructure
and flow tested. We will update the market on the results of this in the coming weeks. With oil price
now at multi-year highs, West Gharib is a very high margin asset in our portfolio and MSD-24 and
subsequent wells will boost production and cashflow from these fields in the coming months. I look
forward to updating the market further as the campaign progresses.'

U.S EIA expects high refinery margins to contribute to
increasing fuel production this summer EIA, Short-Term Energy Outlook (STEO), June 2022
In our June 2022 Short-Term Energy Outlook (STEO), we forecast that U.S. refinery utilization will
be relatively high this summer in response to strong wholesale prices for petroleum products, such
as diesel and gasoline, which have increased more than the price of the crude oil used to make
them.
The price difference between the price of crude oil and the wholesale price of a refined petroleum
product reflects the value of refining crude oil. This difference, known as the crack spread, can
indicate refining margins and profitability. Crack spreads for both diesel and gasoline increased in
the first several months of 2022.
Gasoline and diesel prices and crack spreads are well above historical averages in response to
several factors including:
 Low inventories for both petroleum products in the United States and globally
 Fuel demand increases to near pre-pandemic levels
 Relatively low refinery production of both fuels compared with pre-pandemic levels
 Reduced petroleum product exports from Russia

In response to these high prices, we expect that refinery utilization will reach a monthly average
level of 96% twice this summer, near the upper limits of what refiners can consistently maintain. We
expect refinery utilization to average 96% in June, 94% in July, and 96% in August.
We estimate U.S. refinery inputs will average 16.7 million b/d during the second and third quarters
of 2022.
This average is lower than the 2019 refinery inputs average of 17.3 million b/d despite high utilization
rates because of reductions in refinery capacity since early 2020. U.S. refinery capacity has fallen
by almost 1.0 million b/d since early 2020 because several refineries were closed or converted.
Data source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO), June 2022
We expect wholesale prices for gasoline and diesel will begin decreasing in the third quarter of
2022, as refinery production increases. Despite our forecast price decline, we expect that wholesale
fuel prices will remain well above previous years through the summer, based on higher crude oil
prices as well as the ongoing impact of low global inventories. Low international inventories are
likely to face additional tightness in response to the recently announced European ban on Russia's
energy imports.

NewBase June 14 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil bounces around as tight supply offsets China, recession fears
Reuters + NewBase
Oil prices seesawed in positive and negative territory on Tuesday, holding up despite recession
fears and potential new COVID-19 curbs in China that could dampen demand as the market remains
tightly supplied.
U.S. West Texas Intermediate (WTI) crude eased 4 cents to $120.89 a barrel at 0156 GMT, while
Brent crude futures dipped 6 cents to $122.21 a barrel.
"Discussion within the oil complex still revolves around Libya's decline in production, China
continuing to impose measures to slow the spread of COVID, and concerns around global recession
woes driving demand destruction," said Stephen Innes, managing partner at SPI Asset
Management.
Oil price special
coverage

Supply tightness has been aggravated by a drop in exports from Libya amid a political crisis that
has hit output and ports, while other producers in OPEC+ struggle to meet their production quotas
and Russia faces bans on its oil over the war in Ukraine.
ANZ Research analysts cited Libya's oil minister Mohamed Aoun saying production in the country
has dropped to 100,000 barrels pre day from 1.2 million bpd last year.
On the demand side, the focus is on China, where a COVID outbreak at a bar in Beijing has raised
fears of a new phase of lockdowns just as restrictions were being eased. read more
Unlike other risk assets, the oil market has shrugged off recession fears so far.
"For now the perceived tightness in oil supply is lending resilience to oil prices," said Commonwealth
Bank commodities analyst Tobin Gorey.
The market will be awaiting weekly U.S. inventory data from the American Petroleum Institute on
Tuesday and the U.S. Energy Information Administration on Wednesday for a view on how tight
crude and fuel supply remain.
Six analysts polled by Reuters expect U.S. crude inventories fell by 1.2 million barrels in the week
to June 3, while forecasting that gasoline stockpiles rose by about 800,000 barrels and distillate
inventories, which include diesel and heating oil, were unchanged.

US gasoline average price tops $5 per gallon
The price of US gasoline averaged more than $5 a gallon (3.78 litres) for the first time on Saturday,
data from the AAA showed, extending a surge in fuel costs that is driving inflation. The national
average price for regular unleaded gas rose to $5.004 a gallon on June 11 from $4.986 a day earlier,
AAA data carried by Reuters showed.
US road travel, however, has remained relatively strong, just a couple of percentage points below
pre-pandemic levels, even as prices have risen. Adjusting for inflation, the US gasoline average is
still approximately 8% below June 2008 highs around $5.41 a gallon, according to US Energy
Department figures.
Consumer spending has so far remained resilient even with inflation running at its highest level in
more than four decades, with household balance sheets shored up by pandemic relief programmes
and a tight job market that has fuelled strong wage gains, especially for lower-income workers, the
report said.

Wall Street’s Favorite Recession
Signal Is Back as Curves Invert

NewBase Special Coverage
The Energy world –June -01 -2022
ENERGY FOR ALL
QatarEnergy signs deals with IOCs for North Field East project
Reuters + NewBAse
QatarEnergy signed a partnership deal with TotalEnergies on Sunday for the North Field East
expansion of the world's largest liquefied natural gas (LNG) project, and its chief executive said
more partners would be announced in the coming days.
The Gulf state is partnering with international energy companies in the first and largest phase of a
nearly $30 billion expansion of the North Field project. Saad al-Kaabi, who is also Qatar's minister
of state for energy, said the selection process for partners has been finalised and subsequent
signings could be announced as soon as next week.
No company will have a stake higher than TotalEnergies (TTEF.PA), he added. TotalEnergies Chief
Executive Patrick Pouyanne said the company will have 25% of one train - or liquefaction and
purification facility - in the project.
The North Field Expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction
capacity from 77 million tonnes per annum (mtpa) to 126 mtpa by 2027. Oil majors have been
bidding for four trains of the North Field East expansion, with the other two trains part of a second
phase, North Field South.
Kaabi said Qatar has a unified approach, where all four trains are considered one unit.
TotalEnergies' 25% stake in one virtual train gives it around 6.25% of the whole four trains. "We had
announced that we are no longer investing in any new project in Russia, so the signing of this project
in Qatar is important for us," said Pouyanne.

Kaabi said once the investments have been completed, Asian buyers are expected to make up half
the market for the project, and buyers in Europe the rest.
Exxon Mobil Corp (XOM.N), Shell , ConocoPhillips (COP.N) and Eni (ENI.MI) will also participate in
the North Field expansion, sources said.
The project will boost Qatar's position as the world's top LNG exporter and help to guarantee long-
term supply of gas to Europe as the continent seeks alternatives to Russian flows, said people with
knowledge of the matter.
The top oil and gas producers have been eager to secure a stake in the project, but Qatar's strategy
has been to raise the bar on what it expects from potential partners.
QatarEnergy has waited nearly five years to sign partnership agreements and has emphasized that
it has abundant capital to self-finance the project.
Total, Exxon, Shell, Italy's Eni and Chevron have offered Qatar Energy opportunities to invest in
prize assets they hold overseas.
That move has helped Qatar Energy transform into a significant international player, with stakes in
petrochemical facilities and oil blocks around the world, from South Africa to Suriname.
EXCLUSIVE Energy majors bid for Qatar LNG project despite lower returns
Six top western energy firms are vying to partner in the vast expansion of Qatar’s liquefied natural
 Six majors bid to partner in North Field expansion -sources
 Profits set to sharply drop from previous LNG developments
 LNG supply outlook tightens after major projects stall

gas output, industry sources said, helping the Gulf state cement its position as the leading LNG
producer while several large projects around the world recently stalled.
Exxon Mobil, Royal Dutch Shell, TotalEnergies and ConocoPhillips, which are part of Qatar's
existing LNG production were joined by new entrants Chevron and Italy's Eni in submitting bids on
May 24 for the expansion project, industry sources told Reuters.
The bids show energy giants continue
to have appetite for investing in
competitive oil and gas projects
despite growing government, investor
and activist pressure on the sector to
tackle greenhouse gas emissions.
Unlike Qatar's early LNG projects in
the 1990s and 2000s when the country
relied heavily on international oil
companies' technical expertise and
deep pockets, the country's national oil
company Qatar Petroleum (QP) has
gone ahead alone with the development of the nearly $30 billion North Field expansion project.
It is, however, seeking to partner with the oil majors in order to share the financial risk of the
development and help sell the additional volumes of LNG it will produce.
"I don't think QP need the IOCs expertise in the upstream or midstream construction of the project
but they will be glad to see someone take some LNG volumes off their hands," a senior source in
one of the bidding companies said.
Qatar plans to grow its LNG output by 40% to 110 million tonnes per annum (mtpa) by 2026,
strengthening its position as the world leading exporter of the super-chilled fuel.

An Eni spokesperson confirmed the company is participating in the bidding process. QP, Shell,
Chevron, TotalEnergies, Conoco declined to comment.
Exxon said it did not comment on market rumours, but added: "We look forward to continuing
success in future projects with our partners Qatar Petroleum and the State of Qatar. ExxonMobil
affiliates are working with Qatar Petroleum to identify international joint venture opportunities that
further enhance the portfolio of both."
Leading energy companies see natural gas as a key fuel in the world’s efforts to cut carbon
emissions and replace the more polluting coal, although the International Energy Agency said in
a report last month that investments in new fossil fuel projects should stop immediately in order to
meet U.N.-backed targets aimed at limiting global warming.
Activists say that expansion in natural gas delays a transition to renewable energy that is needed
to meet U.N.-backed targets to battle climate change. The European Union is in the midst of a
debate about what role gas should take in the energy transition.
The outlook for global LNG supplies tightened sharply in recent months after Total suspended its
$20 billion LNG project in Mozambique due to a surge in violence.
It followed a string of delays of LNG projects in North America as COVID-19 hobbled demand last
year.
Global LNG demand has increased every year since 2012 and hit record highs every year since
2015 mostly due to fast-rising demand in Asia. Analysts have said they expect global LNG demand
will grow about 3-5% each year between 2021 and 2025.
LOWER RETURNS
The interest from companies in the Qatari expansion comes despite relatively low returns.

QP offered international bidders returns of around 8% to 10% on their investment, down from around
15% to 20% returns Exxon, Total, Shell and Conoco have seen from the early LNG facilities,
according to sources in three companies involved.
Qatar project returns have never previously been disclosed.
The six companies and QP declined to comment on the terms of the bids.
"Clearly Qatar has become more competitive," a source said. "But it remains very low risk from the
resource perspective."
The results of the tender process are not expected to be announced before September, two of the
sources said.
In March, QP said it will take full ownership of Qatargas 1 LNG plant when its 25-year contract with
international investors including Exxon and TotalEnergies expires next year, in a sign of its growing
confidence.
Qatar is also in talks to make Chinese firms partners in the project, sources told Reuters last month.
QP last month hired international banks for a multi-billion dollar debut public bond sale by the end
of June, two sources said, to help in part development the Northern Field project.

NewBase Energy News 14 June 2022 - Issue No. 1522 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase June 14 -2022 Energy News issue - 1522 by Khaled Al Awadi.pdf

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